Wraps - Melb market?

Hi people

My partner and I are getting ready to make our next purchase and we have been entertaining the idea of doing a wrap.

I know how it all works - what's troubling me is the sums.

If you look around outer Melbourne - say a $200k to $250k 3bdr brick home - then add your margin the monthly payments are the best part of $2000 a month.

Now if you are doing correct due diligence on your clients and not letting them lend more than one third of their net income - that means you are looking for clients earning over $100k pa.

So I guess this post is about market research. I know there are some very experienced Melbourne based wrappers in this forum. Does anyone care to share some first hand experience with any deals they've done in the last 6-12 months?

I'd be really interested to hear of the sale costs and the effort required to find suitable clients?

Or if anyone else has an idea of how I could do further research on the above I'd love to hear that too.

Cheers
Craig
 
Craig,
allmost all banks do allow up to 40% of net income for serviceability; in some cases even up to 50% of net income.

A couple with 2 children, 55K annual gross, no other debts, could get about $200K in loans (in this case based on the Westpac calculator).

You can play around with these figures, the calculator is on the Westpac website (http://hlc1.westpac.com.au/hlc/hlc/Splash.do)
 
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